I understand why I am having this problem (due to Remote Access not being setup we only get indirect access using 2 Mb so only 720p) but I do not wish my server to accessible outside of my home network. Is there any way I can connect my AppleTV directly to the server for the files on my local network?
Are your server and the Apple TV in the same subnet inside your home network?
From what you describe it seems the two don’t see each other locally – that in combination with some bad remote access setup can cause the streaming to be relayed through a server of Plex.
If you want to keep your remote access off but both devices have to stay in their separate networks, you can specify that both are part of the same LAN (see Settings > [Server Name] > Network > LAN Networks)
Yes, both are in the same subnet. The AppleTV is not seeing the Server though i.e. only through relay. I’ll look into the networking → I have set the fields in Plex already but maybe I have something else that is causing the problem… thank you for your answer!